The metric commonly used for weight of advertising is called Gross Rating Point or GRP in short. It measures quantum in terms of the size of the audience reached, and it is computed as the product of the percentage of the audience reached by a campaign times the frequency, i.e., the number of times they see it. This is the same as the sum of the % viewership of the programmes where the campaign is aired.
For example, if in a particular week a brand’s advertisement is aired five times over different programmes, and the viewership across these programmes is 40%, 25%, 15%, 30% and 5%, then the GRP for that week is 115 [40 + 25 + 15 + 30 + 5].
Share of Voice is the brand’s advertising weight [GRP] expressed as a percentage of relevant market [category or segment]. Share of voice may also be expressed in terms of share of advertising expenditure.
It is pertinent to elaborate how viewership is defined as this greatly impacts the size of audience and, consequently, GRP. The industry norm for TV [and radio] is the average minute audience [AMA], and this is defined as the average number of individuals or [homes or target group] viewing a TV channel [or listening to a radio station], during an average minute measured over the programme’s duration.
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Gross rating point, or GRP, is a measure of advertising performance obtained through monitoring weekly television ratings and program rankings. Calculating GRP isn't difficult, but correct interpretation of the results can determine the success or failure of a given advertising campaign. Since TV ratings shift weekly, a company must continually monitor gross rating point to watch for spikes or dips in viewership.
Gross Rating Point Definition
Gross rating point is the total of all weekly rating points for a given schedule of advertisements. Ratings points represent the total number of U.S. households participating in Nielsen ratings for the purpose of determining total viewership of television programs. A single ratings point represents 1 percent of total participants. According to the Nielsen website, as of the 2010-2011 season, the total number of households participating in Nielsen TV ratings was 115.9 million. This makes a single ratings point equal to 1,159,000 households.
Importance of GRP
Advertisers and marketers use GRP to measure the impact of given advertisements. Basically, the more rating points programs earn, the more television viewers have the potential to view the advertisements or promotional spots. This makes securing advertising time on popular network television shows very desirable for companies large and small across the country. Television networks recognize the desirability of advertising on these programs and charge advertising rates in accordance with programming popularity. This is how 30 seconds' worth of advertising time can cost millions of dollars depending on total weekly viewership.
Calculating Gross Rating Point
Calculating GRP requires an advertiser to know the total market percentage a given promotion is reaching and how many times that promotion runs on a given television network. According to MarketingProfs, a marketing advice website, a marketer multiples the percentage of total market exposure by the number of exposures in a week to determine GRP for that promotion. For example, an advertisement reaching 20 percent of the market with a total weekly exposure of five has a GRP of 100.
Impact of GRP
The impact of GRP on a marketing campaign is deceptive. A high rating may indicate a larger number of consumers are viewing a company's advertisements, but these views don't necessarily make an advertising campaign successful. Advertisements that translate into product sales make a successful promotional campaign. Tracking sales numbers can help a company determine if a high GRP is helping the company or if the firm's marketing department needs to come up with new strategies for reaching the right consumers. For example, researching what TV programs a company's customers watch can help the business redirect advertising to more fruitful territory.
Gross Rating Point [GRP] is a ratio used to measure the influence of advertising campaigns on their target audience. It helps companies define their approaches to reach specific target markets and allocate their budgets effectively.
Contents
- Why is a gross rating point important?
- How to Calculate Gross Rating Point
In this article, we’ll discuss the benefits of evaluating your gross rating point and figure out the measures you need to calculate this ratio.
Why is a gross rating point important?
GRP is an essential measure that enables businesses to assess the success of their advertising campaigns. It measures the number of campaign impressions and identifies the level of advertising delivery and exposure. Media buyers use this percentage to determine the strongest components of their media plans.
Evaluating your gross rating point is crucial because it helps measure the impact of your advertising campaigns and messages on people who perceive them. The ratio can be leveraged for various forms of media, such as radio, television, the internet, and billboards.
When having GRP, media owners know the approaches they should and shouldn’t consider to win their target market. Moreover, it allows companies to allocate their resources to develop appropriate advertising campaigns that can effectively reach out to people.
Now that you know why you need to take this measure into account, we’ll proceed to the calculations.
How to Calculate Gross Rating Point
By estimating GRPs, media planners can uncover the number of impressions they managed to obtain through specific channels and campaigns. Media buyers can receive information on the audience they succeeded to reach and compare it with the population.
If you leverage various types of media and strive to determine the efficiency of your advertising campaigns and the number of impressions, see the formula below. It will help you estimate the ratio easily.
Let’s take country A, for example. 60 million of its population are young people aged 20 to 33 years old. A firm’s owner decides to launch a campaign and see its results. It delivers an average frequency of 8 impressions to 1,000,000 young people.
Let’s calculate GRP for this business by using the formula above.
GRP = [1,000,000 / 60,000,000] * 8 = 1.67% * 8 = 13.36
To sum it up, if it’s necessary for you to know the level of your campaign’s effectiveness, you should calculate your GRP. As a result, you’ll know the approaches that work well with your audience, choose the right channels, and deliver messages that resonate with your target market.
What does GRP stand for?
GRP stands for Gross Rating Point. A standard measure in advertising, it measures advertising impact. You calculate it as a percent of the target market reached multiplied by the exposure frequency. Thus, if you get advertise to 30% of the target market and give them 4 exposures, you would have 120 GRP.What is an example of GRP?
GRPs [%] = 100 * Reach [%] × Average frequency [#] Two examples: If an average of 12% of the people view each episode of a television program, and an ad is placed on 5 episodes, then the campaign has 12 × 5 = 60 GRPs. If 50% view three episodes, that's 150 GRPs.What does 1000 GRPs mean?
Gross Rating Points: GRPs are the sum of all program rating points in an advertising schedule. A schedule of 1,000 GRPs means 1,000% of the target population.Why GRP is important example explain?
GRP is an essential measure that enables businesses to assess the success of their advertising campaigns. It measures the number of campaign impressions and identifies the level of advertising delivery and exposure. Media buyers use this percentage to determine the strongest components of their media plans.